Nedbank adds US$62,45 million to sustainability-linked debt transaction for GRIT

In 2022, Nedbank Corporate and Investment Banking (CIB) closed off a year of impressive national and international finance deals by facilitating a US$62,45 million contribution to the largest transaction in the real estate sector ever concluded in sub-Saharan Africa (excluding South Africa).

The deal involved the successful refinancing of a sustainability-linked term loan and revolving credit facility to the total value of US$306 million for Grit Real Estate Income Group Limited (GRIT). GRIT is
an award-winning, impact-focused, pan-African real estate group with an impressive track record of investing in, developing and actively managing a diversified portfolio of assets on the African continent, underpinned by predominantly US dollar- and euro-denominated long-term leases held by high-quality multinational tenants.

CIB’s participation in the GRIT syndication deal was led by its Property Finance Africa (PFA) Team.
According to Gerhard Zeelie, Head of PFA, the total funding amount included multi-jurisdictional debt syndication covering GRIT’s assets and debt facilities in Mozambique, Zambia, Ghana and Senegal, as well as a corporate-level revolving credit facility in Mauritius.

‘Seven of GRIT’s existing debt exposures were consolidated into a single new sustainability-linked, cross-collateralised facility,’ Zeelie explains, ‘thereby streamlining GRIT’s loan management processes thanks to a longer debt tenor, greater efficiencies and flexibility, and optimum pricing.’

Zeelie also points out that the new facility is linked to GRIT’s carbon emission reduction and gender equality targets, which create incentives for the group to increase its focus on transforming its assets and delivering enhanced positive social and environmental impact through its investments.

‘The way in which the finance is structured effectively creates the opportunity for GRIT to deliver scalable and sustainable solutions for the future,’ Zeelie says, ‘which is precisely the kind of impact that Nedbank CIB seeks to enable through its finance partnerships with all its clients, not only in the property finance sector, but across all industries and sectors in which we operate across Africa.’